State Bank of India (SBI) has delivered largely an in-line performance in 3QFY20. Strong recoveries aided NII growth of 22% YoY and improvement in asset quality (GNPA ratio declined by 25bps QoQ). Lower growth in opex at 3% YoY and 1.3% QoQ aided 44% YoY growth in PPoP. The Bank moved to the lower tax regime during the quarter, which resulted in higher-than-expected tax rate due to the impact of DTA write-down and MAT reversal. Risk optimisation continued with decline in RWA/total assets by 400bps QoQ to 51% against 60% two years ago. Loan book grew by a muted 7% YoY, with 5% YoY growth in domestic advances. However, decline in corporate/ SME advances by 0.5% YoY and 5% YoY respectively impacted overall growth trends even as the...